- It has been introduced to change the definition of input service distributor as the office of supplier who receives the tax invoices towards the input services for on behalf of different persons.
- Currently, the conditions to distribute the said credit are specified under section 20 of the CGST act.
- A new section 122A has been introduced to be an inserted which will an overriding section. It imposes penalty on the person who is required to comply with the special procedure relating to registration of machines u/s 148 of the CGST act, for contravention of the said special procedure. The amount of penalty shall be one lakh rupees for every machine not so registered.
- Every machine shall be liable for seizure and confiscation. However, no confiscation shall be done if the following conditions are satisfied:
- the penalty so imposed is paid.
- The registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.
The proposed GST amendments in the union budget 2024 signify a nuanced shift in the tax landscape. Businesses must closely evaluate the changes in input service distribution and understand the implications of non-compliance with the new machine registration procedure.